PRICE ACTION

SETUPS
STOCK MARKET,CRYPTO,FOREX

BY STOXMEE
INTRODUCTION

hello Friends In This Ebook you Get Top

Price action Setup For Treadig
And you can use it in stock market forex
crypto, you have to understand it well and
learn

All Price Action Setup In 15 Minutes Time

Frame

PRESENT BY STOXMEE
PRICE ACTION SETUPS 1
03

15 MUNITE

Selling Trap

Bullish channel

Don't Sell Here

Price moves up in a bullish

channel
 04

Buying Opportunity

We have to buy as soon as the

candle closes above the trend
line

Target

Entry

Stoploss
PRICE ACTION SETUPS 2
05

Price moving in a box

Here we have to wait the
conformation

Buying Opportunity

Here we found a higher high

pattern so we can enter here
with a small stoploss
 06

Higher High

Higher Low

We have to enter as soon as

the previous high break

Target

Entry

Stoploss
 PRICE ACTION SETUPS 3
07
Don't Buy And Sell On
This Level
Wait For Touch This
Support Level

Here came a good moment after a

resistance break, now we can re-enter
here, but after the price approaches the
support line

Whenever the price take

support at a level, we should
enter after a bullish
confirmation.

Support

bullish engulfing
pattern
 08
Trend Change
Because Higher High
Patten

Lower High

Higher Low
Lower Low

We have to buy on support only

when there is bullish engulfing and
higher high pattern.

Target

Entry

Stoploss
 PRICE ACTION SETUPS 4

09

Friends, never a stock goes down in one

go, it is known to everyone when the stock
is in a down trend, then such patterns are
seen, so here we have to go to the sell side
not the buy side.

Whenever the stock is in a down trend you

see such a pattern that means it is moving
up by touching a neckline, then it is to use
the RSI indicator to wait the neckline to
break.

Price Going Up

RSI Value Going

Down
 10

Price Going Up

RSI Value Going

Down
 11

When the neckline break, we have to

enter trade

Selling
Opportunity
 12

Stoploss

Entry

Target

Target Level

Here the target is to set the previous low

PRICE ACTION SETUPS 5

13

Here all the traders wait for the breakout

and as soon as the breakout comes, here
all the traders buy and those traders are
trap
 14

Traders are often trapped in this type of

breakout, here we should find the
opportunity of selling rather than buying.

RSI Value Going

Down
15
 16

So here I had to explain to you that in this type of

pattern we are trapped, we often have to keep this in
mind in trading.
PRICE ACTION SETUPS 6

17

Creating Double
Top Pattern

Whenever this kind of pattern is

formed, we should look for selling
opportunity.

This type of neckline has to be

made in this type of pattern and the
wait is to break.

Selling Selling
Opportunity Opportunity
 18

Stoploss

Entry

Target

You have to enter as soon as the

level break

Stoploss

Entry

Target
PRICE ACTION SETUPS 7

19

Selling Trap
20
 21

Buying
Opportunity

Target

Entry

Stoploss
PRICE ACTION SETUPS 8

22
Morning 1st 15M
Candle

You can use this strategy in nifty

and banknifty and in stocks

Here you have to mark the high

and low of the candle for the first 15
minutes

And here we have to wait for the

marked level to break
 23

morning 1st 15 minute

low break

Selling Opportunity
 24

Stoploss

Entry Target

Target Level

Stoploss

Entry

Target
PRICE ACTION SETUPS 9

25

demand zone

Selling Trap

demand zone
 26

Target Leval

Buying Opportunity

Target

Entry

Stoploss
PRICE ACTION SETUPS 10

27

Inverse
Head And Shoulders

 28

Buying Opportunity

Target 2

Target 1

Entry

Stoploss For Target 1

Stoploss For Target 2

 29

Target

Entry

Stoploss
PRICE ACTION SETUPS 11

30

Don't buy and Sell Here

Wait for Confirmation

Wait for Retest

Buying confirmation will

be found when the price
closes above the trend
line
 31

Buying Opportunity

Target

Entry

Stoploss
 32

Target

Target
Re enter

Entry

Support Stoploss
Level

Stoploss
PRICE ACTION SETUPS 12

33

After a big momentum we see patterns like

this

We don't have to buy into the breakout

immediately

Don't Buy here

 34
Often in this type of breakout, we see a double
top.

we have to go to the selling side here

Selling
Opportunity
 35

Stoploss

Entry

Target
PRICE ACTION SETUPS 13

36

Symmetrical Triangle Pattern

In this type of pattern, the price

often goes up not down.
 37

Level Not Break

Don't Sell here

next Day opening

 38

Buying
Opportunity

Target Level

Entry

Stoploss
PRICE ACTION SETUPS 14

39

lower High
lower High
higher High
Higher low

Higher low
lower low

Higher High

lower High
lower High
Buying
Opportunity

Higher low
lower low
 40

Target Level

Entry

Stoploss

Creating Double Bottom

 41

Buying
Opportunity

After Breakout buy here

Target Level

Entry

Stoploss
PRICE ACTION SETUPS 15

42

Buying
Opportunity
 43

Target Level

Entry

Stoploss
PRICE ACTION SETUPS 16

44
 45

Buying
Opportunity

Target

Entry

Stoploss
PRICE ACTION SETUPS 17

46
 47

Bearish Engulfing

Selling
Opportunity
 48

Stoploss

Entry

Target
PRICE ACTION SETUPS 18

49

Buying
Opportunity
 50
Target

Entry

Stoploss
PRICE ACTION SETUPS 19

51

Buying
Opportunity
 52
Target

Entry

Stoploss
 53

Buy Here

Sell Here
 54

Buy Here

Sell Here

Buy Here
 55

Sell Here

Sell Here
 56

Sell Here
 57

Buy Here

Buy Here
 58

Sell Here
 IMPORTANT FOR PRICE ACTION
59

Candlestick Chart
The concept of candlestick charts came from Japan. That is why they are often referred
to as Japanese candlestick charts. These charts are the most versatile and popular
form of chart representation. Price behavior during each time unit is represented in the
form of a candle. If the closing price of a stock is higher than open price during a
particular time period, then the candle is green, if the close price is below the open price
then the candle is red. Each candle has a body and two wicks. The distance between open
to close is represented by the body of a candle and the upper and lower wicks
represent the highs and lows of a candle.

highest price highest price

closing price OPENING price

OPENING price OPENING price

LOWEST price LOWEST price

 60

Candlestick chart is special not only because it adds a special visual clarity about the
price action, but also because often a single candle stick or two or three consecutive
candlesticks together form a pattern that indicate reversal of a prior move or give
conviction on continuation of the ongoing move. These are called candlestick
patterns. We will discuss about them in due course of time

Candlestick Chart Pattern Example

 61

Trends

Market Trend and Range-Bound

Consolidation

Often market movements happen in the form of trends. A price trend is a continuous or
a directional price movement in upward or downward direction. We call them up -
trend and down -trend respectively. Now if we look at price action in market through
charts, we will find that no price movement happens in a straight line.
Suppose we are looking at a broader uptrend represented as primary move, we may find
intermediate corrections represented as secondary trend and minor counter moves
among the secondary moves represented as minor trend. This is how the market behaves
generally in both the up and the down trends

Market Trends

primary Trend

Often an up- trend is represented in the form of a sequence of higher highs and higher
lows. Similarly a downtrend is represented as a sequence of lower lows and lower
highs. A trend is said to reverse when the sequence is broken.
 62

Trend Reversal
lower high- up trend over

up trend down trend

higher highs and lower highs and
higher lows lower lows

higher low- down trend over

We should remember a simple point that market is not trending all the time. Often the
market consolidates within a small range and goes nowhere. Then suddenly it can
break on the upside or downside.

Market Consolidation

do
w
n
tr
en
d

d
consolidation en
tr
up
 63

Trendline and Channels are one of the most simple and useful tools in the
market. During an uptrend, a trendline is formed by joining lowest points of
periodic pull-backs, defined as secondary moves in the previous section. The up-
trend line has positive slope. To be precise we need two lows to join to form a
trendline during an up-move. This line is then extended in the upward direction;
the third move towards the trend-line is used to validate the trend line. If the
trend line is not broken in the pull back, then it is called trend-line validation.
It is often observed that price pulls back towards the trend line and moves
higher. In an uptrending market it is often easier to make money if one buys
near the trend line and sells higher. The more number of time the trend-line is
validated, more important it becomes. An upward trend line is said to be the
area of support. The selling pressure meets the buying pressure here and
eventually overtime when buying pressure is higher than selling pressure price
sees an upward bounce.

up trend

buying opportunities

stoploss

Now when one buys he or she is looking for the prices to move higher. But this
may or may not happen. Hence the investor should maintain a stop loss point
below which he-or she should cut his position, i.e. book loss. When a trend line
is broken, either the market may reverse the trend, continue the uptrend with
little less force or just go sideways
 64

Uptrend Reversal trend reversal

trend reversal sideways moments

trend reversal

Similarly, during a down-trend: a trendline is formed by joining pull-back

highs. They slope downwards. Just like an up-trend line a down-trend line is
formed by joining two points and then extended in downward direction. Pull
backs towards the trend-lines are low risk points for short selling with a
stop loss little above the trend line. More number of times the line is validated,
more it grows in importance.

Downtrend
hl

Similar to an uptrend-line, when a down trending trend line is broken the trend may
continue with less pace, or reverse or may go side-ways. A downward trend line is said
to be area of resistance. The selling pressure meets the buying pressure here and
eventually overtime when selling pressure is higher than buying pressure price sees a
decline.
 Triangles
65
Triangles are one of the most well-known chart patterns used in technical
analysis. The three most common types of triangles, which vary in
construction and implications, are Symmetrical Triangle, Ascending
Triangle and Descending Triangle. These chart patterns are considered to
last anywhere from a couple of weeks (ideally more than 12 weeks) to
several months. These are areas of consolidations after a trending move
and are generally continuation patterns, i.e. the erstwhile trends resumes
after the breakout. However, in certain cases they act as reversal patterns.
They can appear both in up-trend and down-trend.

symmetrical Triangles

breakout

ascending Triangles

breakout
 66

support break
 67
Hammer

Hammer is a single candlestick bullish reversal pattern. This occurs after a

prolonged down trend. Ideally there should be a gap down opening and
bears should be able to push the price lower as a continuation of a
downmove. At this point, bulls should overpower bears and push price
higher and make close near to the opening price. The candle formed in this
process should be having a small body, a big lower shadow and a
negligibly small upper shadow. Ideally the lower shadow should be at least
twice the length of the body. The color of the body can be either green or
red, but if the body color is green, then the hammer is considered a little
more bullish, as the bulls were strong enough to close the price higher
than the open price. The next day or in next two three days, ideally there
should be a gap up opening or price should move above the high of the
hammer candle. This is called confirmation or validation of the pattern. A
hammer like candle, without validation has no real significance. If price
moves above the high of the hammer a buy trade can be taken with a stop
loss below the low of the candle

the highest price of the day

opening price

Hammer

closing price

the lowest price of the day

 68
Shooting Star

A shooting star is just like a mirror image of a hammer candle. First there
should be a sustained up trend and then there has to be a gap up opening.
The bulls should push price higher in the initial part of the day. Then, later
in the day bears should take in the control of the stock and push prices
down. Eventually the closing price should be very close to the opening
price, resulting in a candle with a small green or red body, a big upper
shadow and a small or negligible lower shadow. The upper shadow of the
candle should be at least twice the length of the body. Now a confirmation
of the shooting star pattern comes if price moves below the low of the
candle within next 2-3 candles. On confirmation, a short trade should be
taken with stop loss above the high of the high of the candle. A shooting
star pattern with a red body is considered slightly more bearish than one
with a green body. It is often observed that shooting star candlestick
pattern acts as bearish reversal pattern and triggers a down move after an
uptrend.

long upper
shadow
high high

low low

little to no
upper shadow

 69
Bullish Engulfing Pattern

Bullish candlestick pattern is a two-candlestick bullish reversal pattern.

First there should be a downtrend. Then we should have a red candle
followed by a green candle. The body of the green candle should engulf the
body of the first red candle. The idea is in the second candle that
constitutes the pattern, the day started below the previous day’s close on
a bearish note. However, as the day progresses, the bulls take-over the
charge and eventually succeed to close above previous day’s high. In such a
scenario, if the highest point of these two candlesticks is breached on the
upside within next 2-3 candles, the bearish engulfing pattern is said to be
confirmed. A buy trade can be initiated upon confirmation with stop-loss
below the low of the two candlestick patterns.
 70
Bearish Engulfing Pattern

Bearish Engulfing pattern is just mirror image of bullish engulfing pattern

with bearish implication. First, we should be having an up-trend. Then we
should have a green candle as continuation. The next day should see a gap
up above the close of previous day. The 2nd day candle should eventually
close red with its body totally engulfing the body of the first candle. The
confirmation comes when within next 2-3 candles the price moves below the
low of the two candles forming the Bearish Engulfing pattern. On
confirmation a trader may take a short trade with stop loss above the top
of the two candlestick patterns. Larger the 2nd candle, more bearish is the
pattern
 71

Doji

The Doji is a single candlestick pattern. The Doji assumes significance, when
it appears after a trending move, be it up or down. The Doji symbolizes
indecision and after a Doji the incumbent trend can reverse, go sideways or
continue uptrend. However, appearance of a Doji is a signal of caution that
the probability is high that the erstwhile trend may be coming to an end.
Doji is a candle which has open and close almost at similar level. There can
be upper shadows and lower shadows of various proportions.